Noida: ED Arrests Samajwadi Party State Secretary In 'Bike Bot' Money Laundering Investigation

ED has arrested a Samajwadi Party leader in a 'Bike Bot' money laundering investigation Ponzi scheme. He was put behind bars on July 21.

ED Arrests Samajwadi Party Leader Dinesh Kumar Singh In Connection With 'Bike Bot' Alleged Ponzi Scam

Source : Twitter/@dir_ed

The Enforcement Directorate (ED) has said that it has arrested Samajwadi Party leader Dinesh Kumar Singh after raiding his premises in Uttar Pradesh's Noida as part of a money laundering probe that was linked to the 'Bike Bot' alleged Ponzi scam. The arrested leader also known as Dinesh Singh Gujjar was put behind bars on July 21 and a special Prevention of Money Laundering Act (PMLA) court sent him to the custody of ED till July 26, reported news agency PTI.

The alleged money laundering case stems from a number of FIRs filed by the Uttar Pradesh Police based on the complaints made by certain investors about the 'Bike Bot' fraud which was allegedly committed by the Garvit Innovative Promoters Ltd. (GIPL), its promoter Sanjay Bhati and others. As per the ED, Bhati and others allegedly floated lucrative investment schemes in the name of 'BIKE BOT' in 2017, reported PTI.

ED has conducted search at the premises in Noida belonging to Dinesh Kumar Singh alias Dinesh Singh Gujjar, State Secretary of Samajwadi party, UP. During the search, various incriminating evidences have been seized. Subsequently, Dinesh Singh Gujjar was arrested on 21.07.2023.

— ED (@dir_ed) July 24, 2023

ED said that according to the scheme, a customer could invest in 1, 3, 5 or 7 bikes which would be maintained and operated by the company and the investors would be paid monthly rental, EMI and bonus (in case of investment in multiple bikes), reported PTI. The investigating agency alleged that "The funds so collected were rotated in a fashion akin to a Ponzi scheme and were ultimately used in creation of assets in the name of the company and other persons."

The ED expanded on the role played by Dinesh Singh Gujjar, a state secretary of the Samajwadi Party in UP, and said, " He used his network to locate beneficiaries of the proceeds of crime generated through 'Bike Bot scam' and by flouting his relations with the ED officials, cast pressure or enticement on his victims to extract money which directly or indirectly was a part of the proceeds of crime." The agency added that "incriminating" pieces of evidence were seized from the searched premises, reported PTI.